[Text/Observer Network Zhang Jingjuan] After US President Trump played the so-called "reciprocal tariff" card, Americans have launched a frenzied stockpiling spree.
According to The Wall Street Journal's report on March 3, Americans had already become nervous before the official implementation of the tariff policy. From college students and full-time mothers to corporate executives... people from all walks of life across the country have sparked a "prepare for a rainy day" consumption trend. A 50-year-old New York resident said that after running around多家 stores and calling the staff, he finally managed to purchase the last Chinese brand television at that store.
The report stated that when Trump was still announcing the new tariff policy, Cedar Roach, a 22-year-old student majoring in public policy at Southern Methodist University, quickly placed an order for a $244 Lululemon fitness suit from Canada and bought a $150 piece of trade from the British independent women's brand House of Sunny. His boyfriend, Sean MacKenzie, went out and bought 24 cans of Irish Guinness beer.
Roach said that tariffs have been a hot topic on campus, especially the potential impact on alcohol prices. She and her friends also kept an eye on the stock market. "This is the only time in my four years of university that I've heard people who are not interested in politics or economics talking about economics."
The report noted that American consumers cannot predict the rise in prices during the pandemic, but they will no longer miss out on opportunities in the face of tariffs. Economists have warned that tariffs may increase the prices of agricultural products, clothing, electronics, cars, and many other goods.
The Wall Street Journal pointed out that before Trump announced imposing a 10% "minimum baseline tariff" on US trading partners and levying higher tariffs on countries including China and India, Americans had already become anxious. A survey by the University of Michigan in March showed that despite the slowdown in the month-to-month price increase in February, people's expectations of inflation were still surging. Currently, many people seem to be still观望before adjusting their spending, believing that Trump is using the threat of a trade war to gain favorable negotiation terms.
At 4:00 PM on April 2, American billionaire Mark Cuban reminded his fans on the social platform Bluesky to start stockpiling. Cuban wrote, "From toothpaste to soap, anything that can be stored should be bought early, preferably before the store restocks."
Cuban emphasized that even American-made goods might increase in price. "They will blame it on tariffs."
In supermarkets and electronic appliance stores, some consumers seem to have taken Cuban's advice, pushing carts full of items across the parking lot. However, others continue shopping as usual, believing that it will still be timely to purchase when prices really start to rise.
Noel Peguero bought a Hisense TV. The Wall Street Journal
Noel Peguero, a 50-year-old New Yorker, took action immediately upon hearing the news about the tariff. From the evening of the 2nd to the morning of the 3rd, he spent $3,000 buying electronics, car parts, gardening tools, and other household items.
"Now is the time to go on a big shopping spree," Peguero said as he loaded a 40-inch Hisense TV into the trunk of his car.
Peguero went through great efforts to get this TV. He mentioned that he visited two well-known electronics retailers in New York, but when he arrived, he found that this model was out of stock. When he called the store in Queens, he was told that only one was left. "I called the clerk and begged him, 'Please hold it for me,'" he said.
Andrea Sanabria, a 29-year-old full-time mother, is also preparing for an uncertain future. She told The Wall Street Journal that she has purchased many of the things she usually buys and plans to freeze some food to keep it longer. Since her husband is the sole breadwinner, she has to be frugal. "There are so many things to worry about," she said.
Kelly Long, a financial advisor, said that in recent weeks, she has received more unusual inquiries about money from her clients and friends than ever before in her career. One of her friends even pulled her aside at a party to ask how much cash she should keep at home. Someone else asked if she could transfer her account overseas and exchange money for gold and Bitcoin.
"There is a feeling of, 'What can we do to take control of this situation?' " Long said. Her response was: probably not much. She said that if the worst-case scenario occurs, what you truly own is your adaptability. "Get good sleep and take care of yourself so you can cope with economic shocks. Don't go into debt to stock up."
Long said that her recent expenses include buying a $62 asthma medication for her long-haired tabby cat Larry, which she bought from Canada, and replacing her roof, which is 25 years old. The worker told her that she only had 48 hours to decide on his quote because he was worried that tariffs would make materials more expensive.
Items purchased by Long for her cat. The Wall Street Journal
Jia Ming Ju (translated name), CEO of a Chinese medicine company and mother of two children, is concerned that tariffs will affect her life and business. During the pandemic, her company has already been impacted by rising production costs. In January this year, her house in Los Angeles was destroyed by wildfires. This series of blows has left her physically and mentally exhausted.
In addition to striving to stockpile Chinese herbs for her business and family, Jia Ming Ju also plans to buy 20 bottles of soy sauce, 10 bottles of oyster sauce, and some seaweed snacks that her children love.
On April 2, the United States intensified its use of the "tariff stick," announcing a 10% minimum baseline tariff on trading partners and imposing higher tariffs on certain trading partners. This move not only casts a shadow over the world economy but will also severely harm the US economy.
Bloomberg reported on the same day under the title "Trump's Tariff Policy Makes the US the Biggest Loser in the Market," stating that Trump's tariff policy shook the global trade system, but its damage to US assets exceeded that of many large economies just hit by the "tariff stick."
Ray Attrill, head of foreign exchange strategy at National Australia Bank Ltd., said, "The tariff news has exacerbated concerns about US economic growth, leading to further declines in US stocks. This means that the dollar no longer enjoys the support of its traditional status as a safe haven and reserve currency."
Scott Chronert, US equity strategist at Citigroup, said in a report that the latest announced tariff policies increase the risk of damaging consumer and business confidence. Even if the tariffs are eventually canceled, this risk may persist. He said that the bank will likely lower its expectations for the US stock market.
According to a recent report by Goldman Sachs, as the US government's tariff policies impact the global economy and financial markets, the probability of a US economic recession within the next 12 months has risen to 35%, higher than the previous expectation of 20%. Additionally, Goldman Sachs has lowered its target point for the S&P 500 index at the end of this year from 6,200 points to 5,700 points, marking the second downward revision since March.
Neil Birrell, chief investment officer at US asset management company Premier Miton Investors, said in a phone interview, "Global asset allocators will view the US in a completely different light. Will international investors sell US assets and start transferring funds? Yes, they may do so."
This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.
Original article: https://www.toutiao.com/article/7489473308459532837/
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